Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

How To Get Started In Commercial Real Estate Investing

Commercial real estate investing can be very rewarding for those who take the time and effort to approach it wisely, but it can be a trap for those who rush in without doing their homework properly.

Too often, investors rush into buying a property for all the wrong reasons ? “it’s a good deal,” a “bargain opportunity” and the list goes on. Then they wonder what happened when the investment either goes pear shaped or becomes a full time job.

If you are serious about building significant wealth from commercial property investment, you must have a proper investment strategy. This is a get rich slow business that requires patience, planning and persistence.

The key elements to any property investment strategy are:

* Get your personal financial affairs in order and make sure they are geared towards building wealth, not paying off consumer debt. Also, check your credit rating to make sure it is in order.

* Draw up a list of your criteria for property type, size and location. Be aware that each type of property requires a different set of skills to manage and offers varying rates of return. It is much easier to fit the property to your strengths rather than you try and change to fit the property.

* Study your local market so you can quickly identify opportunities that are within your capacity to act on. It’s no use looking to invest in an area where you don’t have on the ground knowledge.

* Be prepared to study and learn. Once you’ve spotted a possible deal, you need to be able to accurately value a property based on its condition, your return expectation, and your borrowing power. You need to understand why “what is it worth” is the wrong question to ask, and how to answer the right question “what is it worth to me?”

* Last, you need to learn how to structure deals and make offers too good to refuse.

When you have done this homework properly, you will be in a position to act decisively, reap the profits and keep them. Of course, you will need to consult regularly with your accountant on tax planning and asset protection, which are cornerstones of any wealth building plan.

You also need to consider what your overall portfolio will look like. Don’t fall into the trap of buying all sorts of different properties and then end up with it being a full time job as you juggle dealing with evictions, skips, delinquencies, maintenance and bills.

Once your overall planning is done, the next step is to select your real estate team. You will need a good real estate agent, loan officer, tax advisor, and lawyer. These people are critical to your success because the investor with the best knowledge can quickly identify the properties to ignore and those worth considering.

Remember the old adage, “the quick and the dead” ? the speed at which you can close a deal will give you the edge in any type of market. In addition, your advisors can point you in the right direction regarding finance, tax and legal issues.

Also, there is a good reason behind the catch cry, “location, location, value”. You want a return on your dollar so you are looking for a property that requires some attention so you can add value.
One strategy is to buy real estate in up-and-coming area with new developments or renovated properties. This makes it easy to attract and keep good tenants and leads to greater returns.

Another tactic to add value is to buy properties in solid locations but require some maintenance or upgrading, such as improving the aesthetic appeal of the building, thus instantly improving its value with little outlay.

In regard to financing, banks are the most obvious first lender, but commercial loans are not quite as simple as the more commonly known residential loans and you should always seek professional advice from your accountant and legal advisor.

You should also understand the various methods of financing, such as double closing, lease options, and contract for deed.

Double closing has attracted negative publicity lately, but only because it is misunderstood. This is a perfectly legal, moral and ethical method of trading that has been around for 100 years or more.

A double closing is simply two back-to-back closings wherein the proceeds from the second closing are used to fund the first closing. Both closings are done in escrow, so the “middleman” can buy and resell a property for profit without putting up their own cash.

The main downside you have to be careful of is that the closing rarely goes to plan and there are delays of up to a few weeks, which can cause the plan to unravel. Make sure any contract allows for this and you should be covered.

Contract for deed is an agreement whereby the buyer makes installment payments on an arrangement similar to car financing. That is, the seller holds the title to the property while the buyer has the equitable title.

Lease options consist of two elements, the first of which is the lease. This is a contract for use and possession of the property, thus creating a lessor/lessee relationship.

The second element provides a purchase option, which is a unilateral agreement where the seller agrees to give the buyer the exclusive right to the leased property. This is NOT a sale.

Make the effort to prepare your own income and expenses pro formas from the beginning, or get your accountant to do it. Don’t rely on operating results or projections presented by the agent or the seller ? chances are the seller will overstate income and understate expenses, then claim ignorance if challenged.

The only way to know the investment value of what the property is worth to you, is to develop an accurate projection of income and expenses, which can only be obtained by researching the market and determining in advance what the cash flow will be once your investment and management plan is in place.

Also, you need at least a 20-25 % down payment to get access to the best financing terms. You can still get finance on a payment down to 10% but you will pay more interest, loan fees and private mortgage insurance.

Remember, borrowing to cover the majority of your acquisition costs can boost your rates of return, but too much debt expense can be dangerous if the market takes a downturn.

About the Author:

Specializing in commercial and investment real estate, Tony Seruga, Yolanda Seruga and Yolanda Bishop are always searching for new and profitable commercial properties across the U.S. Visit http://www.maverickrei.com for more great information

Real Estate and REITS Investing

You might think the first rule in real estate investment is location but really it is to be cautious of who you are working with. As with any other industry the real estate world is filled with its share of bad apples including a large majority of those late night infomercial gurus claiming to teach you the way to become a millionaire through real estate.

For those who are thinking about investing in real estate there are a few things you will need to make it a successful venture. First off you need investment capital or some form of getting it without putting yourself upside down financially.

Location of the investment property is highly important. You don’t want to invest in an area that has a failing economy or has too many for sale signs.

If you want to invest in real estate then you need to have great management, people, and negotiating skills to help you in every step of the process. It is likely that some sort of problem will occur so be prepared. Some people have the idea that flipping a house is as easy as buying a property, fixing up a few small inexpensive things, and then selling it for a major profit but it is never as simple as that.

There is also real estate investment trusts. This allows you to invest in real estate for far less money and there is no stress of fixing any tenants problems. REITS invest into several different corporations that are involved in real estate including everything from shopping centers to development companies. They are also listed on the NASDAQ and the stock exchange.

REITS work in a similar way as mutual funds with the exclusion that they set up a portfolio that is only involved in real estate. They must pay a large portion of their earnings to investors.

Before investing in a REIT you should fully think about the economic conditions where the key holdings are located. You should also know the past performance of the REIT and what the future projections look like. Speak with the REIT manager who works like a mutual funds manager.

REITS are similar to stocks, bonds, and mutual funds in the fact that they have high and low periods. They can turn into financially strong investments over time and pay dividends. REITS are liquid assets and are a much more secure way of investing in real estate then buying property.

The major reason that investing in real estate is considered so high risk is because the market is constantly fluctuating. For anyone to invest in any type of real estate without having adequate knowledge of the area surrounding it is very high risk.

It is wise to enlist the help of a professional real estate agent who can provide you with information that can help you profit despite the fluctuations in the market. Even if you only use one for your first investment a real estate professional can provide you with information that can help you find more profitable homes.

You may wish to contact Joe and Colleen Lane, Realtors? for more info on real estate, especially in the areas of Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities.

About the Author

Published by author Spencer H. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate.

Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Real Estate Investing Tip - Three Things That You Need To Know To Succeed

Three things that you need to know to succeed

Are you new to the world of real estate investing? There are many key points involved in real estate investment that can help you make your deals more profitable. Real estate investing is all about facing the challenges and pitfalls you may encounter along the ways. If you are new to this venture there is definitely a lot to learn. Once you have groomed yourself and have gained some experience, you can become the master of the art and can surely make more profits.

Here are some useful Real estate investing tips

1. Selecting a right location:

Selecting a right location is very important to achieve success in your real estate investment deals. The better the location, the better the chances that the value of your property will increase over time. It would be advisable to select a location where the demand for the property is high and the property prices are always rising. You need to consider many prospects before selecting a location for your real estate. One of the key points you have to consider is about the major developments that are planned for the area in the future.

2. Pay Market Value:

Never pay more for a property than what it is worth. It is very important to access the market value of a property before you actually consider buying it. Buying a property in a good location can be a good option as you can expect the value to double every 7 to 10 years. You can also ask an agent on information on price growth in a suburb.

3. Attracting tenants:

One of the most important point you need to consider while buying a property is whether it will attract tenants or not. It would be advisable to buy a property in an attractive location where other people wants to live as tenants. You need to put yourself in the tenant’s position as to what they will consider buying from you. You need to work out on certain points to attract tenants this includes good access to transportation, education facilities, health, community facilities and adequate parking.

Copyright ? 2006 Joel Teo. All rights reserved.

About the Author

Joel Teo writes on arizona estate goodyear investment real . Learn more about Property Investment by signing up for his free Property Investment Ezine

Real Estate Investing and Yoga

Recently someone emailed me from my real estate web page serving the London Ontario Canada real estate market asking for advice regarding the purchase of there first real estate investment. The next morning when I was practicing some yoga it occurred to me that successful real estate investing is very much like yoga. Both are very simple in execution and theory; however both require discipline, consistency and perseverance.

In yoga you take a relatively simple position and hold it for a long period of time to derive benefit. Likely at this point you see where I’m going with this analogy. Yes indeed real estate is quite the same. You take a position which is buying a property and hold onto that position for a sufficient period of time to derive a benefit. Sounds simple indeed! However, if you’ve tried yoga you know that it can be one of the most challenging workouts one can do. In real estate investing one can be challenged by, raising interest rates, bad tenants, vacancies, maintenance issues and perhaps most significant changing personal circumstances. You need to hold on to your position to derive a planned for or significant benefit, which in this case is significant appreciation of the property.

To derive a benefit from yoga one must have certain rules that have to be consistently followed. For example, one must plan for specific times per day or week to set aside for yoga practice. Other rules might be not to be overly fatigued, inebriated etc. for these time periods. For real estate investing setting goals is a separate issue from setting rules. In my opinion it is extremely important to do significant research so that one can realistically set certain rules as these rules will protect you from impulse buying and poor buying practices in general the least of which is one’s own greed or ambition. For example, many years ago prior to being a realtor I bought houses close to the University of Western Ontario Canada and fixed them up to rent to students. So here are my rules from this time period.

1. Identify certain geographic area based on travel time to the main campus.

2. Know market rents for this geographic area

3. Be very conversant with market value of properties in this geographic area and know cost of capital improvements if any for all the work required prior to purchase

4. Ignore other geographic areas

This went extremely well for me, until I broke one of my own rules and purchased a house outside the geographic area. I’d like to blame this on a fast talking real estate agent; however it was my greed/ambition that truly was to blame. The main point here is one needs a set of rules or guidelines specific to his/her investment goals, geographic area and capabilities and stick to them. The above rules may not be applicable to your situation but are for illustrative purposes. After all everyone should have their own rules to live by (lol) In regards to investing in real estate or Yoga I hope the above may provoke some thought and provide some guidance.

Real Estate and REITS Investing

You might think the first rule in real estate investment is location but really it is to be cautious of who you are working with. As with any other industry the real estate world is filled with its share of bad apples including a large majority of those late night infomercial gurus claiming to teach you the way to become a millionaire through real estate.

For those who are thinking about investing in real estate there are a few things you will need to make it a successful venture. First off you need investment capital or some form of getting it without putting yourself upside down financially.

Location of the investment property is highly important. You don’t want to invest in an area that has a failing economy or has too many for sale signs.

If you want to invest in real estate then you need to have great management, people, and negotiating skills to help you in every step of the process. It is likely that some sort of problem will occur so be prepared. Some people have the idea that flipping a house is as easy as buying a property, fixing up a few small inexpensive things, and then selling it for a major profit but it is never as simple as that.

There is also real estate investment trusts. This allows you to invest in real estate for far less money and there is no stress of fixing any tenants problems. REITS invest into several different corporations that are involved in real estate including everything from shopping centers to development companies. They are also listed on the NASDAQ and the stock exchange.

REITS work in a similar way as mutual funds with the exclusion that they set up a portfolio that is only involved in real estate. They must pay a large portion of their earnings to investors.

Before investing in a REIT you should fully think about the economic conditions where the key holdings are located. You should also know the past performance of the REIT and what the future projections look like. Speak with the REIT manager who works like a mutual funds manager.

REITS are similar to stocks, bonds, and mutual funds in the fact that they have high and low periods. They can turn into financially strong investments over time and pay dividends. REITS are liquid assets and are a much more secure way of investing in real estate then buying property.

The major reason that investing in real estate is considered so high risk is because the market is constantly fluctuating. For anyone to invest in any type of real estate without having adequate knowledge of the area surrounding it is very high risk.

It is wise to enlist the help of a professional real estate agent who can provide you with information that can help you profit despite the fluctuations in the market. Even if you only use one for your first investment a real estate professional can provide you with information that can help you find more profitable homes.

You may wish to contact Joe and Colleen Lane, Realtors? for more info on real estate, especially in the areas of Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities.

About the Author

Published by author Spencer H. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate.

How To Get Started In Commercial Real Estate Investing

Commercial real estate investing can be very rewarding for those who take the time and effort to approach it wisely, but it can be a trap for those who rush in without doing their homework properly.

Too often, investors rush into buying a property for all the wrong reasons ? “it’s a good deal,” a “bargain opportunity” and the list goes on. Then they wonder what happened when the investment either goes pear shaped or becomes a full time job.

If you are serious about building significant wealth from commercial property investment, you must have a proper investment strategy. This is a get rich slow business that requires patience, planning and persistence.

The key elements to any property investment strategy are:

* Get your personal financial affairs in order and make sure they are geared towards building wealth, not paying off consumer debt. Also, check your credit rating to make sure it is in order.

* Draw up a list of your criteria for property type, size and location. Be aware that each type of property requires a different set of skills to manage and offers varying rates of return. It is much easier to fit the property to your strengths rather than you try and change to fit the property.

* Study your local market so you can quickly identify opportunities that are within your capacity to act on. It’s no use looking to invest in an area where you don’t have on the ground knowledge.

* Be prepared to study and learn. Once you’ve spotted a possible deal, you need to be able to accurately value a property based on its condition, your return expectation, and your borrowing power. You need to understand why “what is it worth” is the wrong question to ask, and how to answer the right question “what is it worth to me?”

* Last, you need to learn how to structure deals and make offers too good to refuse.

When you have done this homework properly, you will be in a position to act decisively, reap the profits and keep them. Of course, you will need to consult regularly with your accountant on tax planning and asset protection, which are cornerstones of any wealth building plan.

You also need to consider what your overall portfolio will look like. Don’t fall into the trap of buying all sorts of different properties and then end up with it being a full time job as you juggle dealing with evictions, skips, delinquencies, maintenance and bills.

Once your overall planning is done, the next step is to select your real estate team. You will need a good real estate agent, loan officer, tax advisor, and lawyer. These people are critical to your success because the investor with the best knowledge can quickly identify the properties to ignore and those worth considering.

Remember the old adage, “the quick and the dead” ? the speed at which you can close a deal will give you the edge in any type of market. In addition, your advisors can point you in the right direction regarding finance, tax and legal issues.

Also, there is a good reason behind the catch cry, “location, location, value”. You want a return on your dollar so you are looking for a property that requires some attention so you can add value.
One strategy is to buy real estate in up-and-coming area with new developments or renovated properties. This makes it easy to attract and keep good tenants and leads to greater returns.

Another tactic to add value is to buy properties in solid locations but require some maintenance or upgrading, such as improving the aesthetic appeal of the building, thus instantly improving its value with little outlay.

In regard to financing, banks are the most obvious first lender, but commercial loans are not quite as simple as the more commonly known residential loans and you should always seek professional advice from your accountant and legal advisor.

You should also understand the various methods of financing, such as double closing, lease options, and contract for deed.

Double closing has attracted negative publicity lately, but only because it is misunderstood. This is a perfectly legal, moral and ethical method of trading that has been around for 100 years or more.

A double closing is simply two back-to-back closings wherein the proceeds from the second closing are used to fund the first closing. Both closings are done in escrow, so the “middleman” can buy and resell a property for profit without putting up their own cash.

The main downside you have to be careful of is that the closing rarely goes to plan and there are delays of up to a few weeks, which can cause the plan to unravel. Make sure any contract allows for this and you should be covered.

Contract for deed is an agreement whereby the buyer makes installment payments on an arrangement similar to car financing. That is, the seller holds the title to the property while the buyer has the equitable title.

Lease options consist of two elements, the first of which is the lease. This is a contract for use and possession of the property, thus creating a lessor/lessee relationship.

The second element provides a purchase option, which is a unilateral agreement where the seller agrees to give the buyer the exclusive right to the leased property. This is NOT a sale.

Make the effort to prepare your own income and expenses pro formas from the beginning, or get your accountant to do it. Don’t rely on operating results or projections presented by the agent or the seller ? chances are the seller will overstate income and understate expenses, then claim ignorance if challenged.

The only way to know the investment value of what the property is worth to you, is to develop an accurate projection of income and expenses, which can only be obtained by researching the market and determining in advance what the cash flow will be once your investment and management plan is in place.

Also, you need at least a 20-25 % down payment to get access to the best financing terms. You can still get finance on a payment down to 10% but you will pay more interest, loan fees and private mortgage insurance.

Remember, borrowing to cover the majority of your acquisition costs can boost your rates of return, but too much debt expense can be dangerous if the market takes a downturn.

About the Author:

Specializing in commercial and investment real estate, Tony Seruga, Yolanda Seruga and Yolanda Bishop are always searching for new and profitable commercial properties across the U.S. Visit http://www.maverickrei.com for more great information

Next Page »